Chapo meets IMF Managing Director

Maputo, 23 Sep (AIM) – Mozambican President Daniel Chapo on Tuesday, in New York, met with International Monetary Fund (IMF) Managing Director Kristalina Georgieva, at a time when Mozambique appears at the negotiating table with the unprecedented status of having no outstanding debt to that international financial institution.

The meeting took place just days after the conclusion of an IMF technical mission in Maputo, which worked with Mozambican authorities to lay the groundwork for a new financing program.

The meeting between Chapo and Georgieva was held on the sidelines of the opening of the General Debate of the 81st Session of the United Nations General Assembly. Discussions focused on strengthening the fiscal position, monetary policy, and the continuation of economic reforms, as the country seeks to move toward a new financial arrangement with the Fund.

Last March, the Mozambican state fully settled its financial obligations to the fund ahead of schedule, making a payment of approximately 701.4 million US dollars, corresponding to 514.04 million Special Drawing Rights (SDR). As a result of this operation, Mozambique’s outstanding credit balance with the IMF dropped to zero.

The New York meeting follows an IMF mission to Mozambique, led by Pablo López-Murphy and held from September 9 to 18, aimed at deepening technical discussions regarding a potential new financial support program.

Speaking to reporters after the meeting, Georgieva described the talks as positive and stated that the IMF intends to partner with Mozambique to strengthen economic fundamentals and create conditions for growth and prosperity.

However, she acknowledged that the country is facing a particularly challenging economic environment, marked by the impact of floods and external pressures.

“In this context, we discussed how to strengthen Mozambique’s fiscal position, how to place monetary policy on a solid footing, and how Mozambique can pursue reforms in a way that is sensitive to vulnerable people in society”, she explained.
The IMF Managing Director also expressed optimism regarding the implementation of a program capable of strengthening the country’s macroeconomic fundamentals and setting it on a path toward prosperity.

During the same visit to New York, Chapo also met with the Managing Director of the International Finance Corporation (IFC), Makhtar Diop, to discuss opportunities to mobilize investment and financing for private sector development and strategic projects in Mozambique.

Discussions with the IFC focused on sectors such as agriculture and agribusiness, energy, infrastructure, the digital economy, financial inclusion, and renewable energy.

Diop expressed the IFC’s readiness to continue working with Mozambique on mobilizing capital and identifying investment opportunities in strategic areas of the national economy.

PC/Am/